creditors but is also entitled to have regard to maintaining its control of its own internal economy.

The Allied Governments agree that the Transfer Committee should only transfer marks for purchases under the operation of the Isaid Article VI if and when the accumulated funds exceed the amounts which the Bank of Issue will accept as short term deposits.

CLAUSE 5.

If the Transfer Committee is equally divided in regard to the question whether concerted financial manœuvres have been set on foot within the meaning of Article VIII of Annex 6 of the Experts' Report, the question shall be referred to an independent and impartial arbitrator, who shall hear the views of each of the members of the Committee and decide between them. The arbitrator shall be a financial expert selected by the members of the Transfer Committee in agreement, or, in default of an agreement, by the President for the time being of the Permanent Court of International Justice at The Hague.

On all other questions, if the Transfer Committee is equally divided, the Chairman shall have a casting vote.

If the funds at the disposal of the Agent-General for Reparation Payments are at any time accumulated in Germany up to the limit of 5 milliards of gold marks referred to in paragraph (a) of Article X of Annex 6 of the Experts' Report, or such lower figure as may be fixed by the Transfer Committee under paragraph (b) of that Article and the Committee has, by a majority, decided that concerted financial manœuvres within the meaning of Article VIII of that Annex have not taken place, or that certain measures to defeat manœuvres contemplated in that Article should not be taken, any member of the minority of the Committee may, within eight days, appeal against such decision to an arbitral Tribunal, whose decision on the matters before them shall be final. The arbitral Tribunal shall consist of three independent and impartial financial experts, including a citizen of the United States of America, who shall act as Chairman, such experts to be selected by the Committee unanimously, or, failing unanimity, to be appointed by the President for the time being of the Permanent Court of International Justice at The Hague.

CLAUSE 6.

If any Government interested (Allied or German) consider that a defect exists in the technical working of the Experts' Plan so far as it relates to the collection of German payments or the control of

the securities therefor, which can be remedied without affecting the substantial principles of that Plan, it may submit the question to the Reparation Commission, which will transmit it forthwith for enquiry and advice to a Committee consisting of the AgentGeneral for Reparation Payments, the Trustee or Trustees for the Railway and Industrial Mortgage Bonds, the Railway Commissioner, the Bank Commissioner and the Commissioner of Controlled Revenues.

This Committee will, as soon as possible, transmit to the Reparation Commission either a unanimous report, or majority and minority reports, including, if necessary, proposals for the removal of any defect to which attention may have been drawn.

If the Reparation Commission arrives at a unanimous decision, it shall invite the German Government to adhere to it, and if an agreement is reached with the German Government on the subject, the necessary measures shall be carried into effect without delay.

If the Reparation Commission is not unanimous, or if any decision taken unanimously is not accepted by the German Government, any of the parties interested may submit the question to a Committee of three independent and impartial experts chosen by agreement between the Reparation Commission deciding unanimously and the German Government, or, in default of such agreement, by the President for the time being of the Permanent Court of International Justice at The Hague. The decision of this Committee shall be final.

It is understood that this provision shall not apply to any question in regard to the disposal of the funds paid to the account of the Agent General for Reparation Payments, or to any other matter which falls solely within the competence of the Transfer Committee.

Done at London the 30th day of August, 1924, in a single copy which will remain deposited in the archives of His Britannic Majesty's Government, which will transmit a certified copy to the Reparation Commission for inclusion in the Agreement of August 9, 1924, and to each of the signatory Governments.

10. Inter-Allied Agreement'

Signed at London, August 30, 1924 after initialing on August 16; not subject to ratification; effective by virtue of the operation of the Experts' (Dawes) Plan beginning September 1, 1924

THE ROYAL GOVERNMENT OF BELGIUM, THE GOVERNMENT OF HIS BRITANNIC MAJESTY (WITH THE GOVERNMENTS OF THE DOMINION OF CANADA, THE COMMONWEALTH OF AUSTRALIA, THE DOMINION OF NEW ZEALAND, THE UNION OF SOUTH AFRICA, AND INDIA), THE GOVERNMENT OF THE FRENCH REPUBLIC, THE GOVERNMENT OF THE GREEK REPUBLIC, THE ROYAL GOVERNMENT OF ITALY, THE IMPERIAL GOVERNMENT OF JAPAN, THE GOVERNMENT OF THE PORTUGUESE REPUBLIC, THE ROYAL GOVERNMENT OF ROUMANIA AND THE ROYAL GOVERNMENT OF THE SERB-CROATSLOVENE STATE,

Anxious to provide for the complete fulfilment, so far as they are concerned, of the plan presented to the Reparation Commission on April 9, 1924, by the First Committee of Experts appointed by it on November 30, 1923, "to consider the means of balancing the budget and the measures to be taken to stabilise the currency of Germany," the said plan being approved by the Commission and accepted by each of the interested Powers, and

Having resolved to conclude an agreement for this purpose, the Undersigned, duly authorised, have agreed as follows:

ARTICLE I.

The Governments represented upon the Reparation Commission acting under Paragraph 22 of Annex II to Part VIII (Reparation) of the Treaty of Versailles will modify the said Annex II by the introduction of the following paragraphs 2 A and 16 A, and by the amendment of paragraph 17 as set out below.

Paragraph 2 A. "When the Reparation Commission is deliberating on any point relating to the report presented on April 9, 1924, to the Reparation Commission by the First Committee of Experts appointed by it on November 30, 1923, a citizen of the United States of America appointed as provided below shall take part in the discussions and shall vote as if he had been appointed in virtue of Paragraph 2 of the present Annex.

"The American citizen shall be appointed by unanimous vote of the Reparation Commission within thirty days after the adoption of this amendment.

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"In the event of the Reparation Commission not being unanimous, the appointment shall be made by the President for the time being of the Permanent Court of International Justice at

The Hague.

"The person appointed shall hold office for five years, and may be re-appointed. In the event of any vacancy the same procedure shall apply to the appointment of a successor.

"Provided always that if the United States of America are officially represented by a delegate on the Reparation Commission, any American citizen appointed under the provisions of this paragraph shall cease to hold office and no fresh appointment under these provisions shall be made as long as the United States are so officially represented."

Paragraph 16A. "In the event of any application that Germany be declared in default in any of the obligations contained either in this part of the present Treaty as put into force on January 10, 1920, and subsequently amended in virtue of Paragraph 22 of the present Annex, or in the Experts' Plan dated April 9, 1924, it will be the duty of the Reparation Commission to come to a decision thereon. If the decision of the Reparation Commission granting or rejecting such application has been taken by a majority, any member of the Reparation Commission who has participated in the vote may within eight days from the date of the said decision appeal from that decision to an arbitral commission composed of three impartial and independent persons whose decision shall be final. The members of the arbitral commission shall be appointed for five years by the Reparation Commission deciding by a unanimous vote, or failing unanimity by the President for the time being of the Permanent Court of International Justice at The Hague. At the end of the five-year period or in case of vacancies arising during such period the same procedure will be followed as in the case of the first appointments. The president of the arbitral commission shall be a citizen of the United States of America."

Paragraph 17. "If a default by Germany is established under the foregoing conditions, the Commission will forthwith give notice of such default to each of the interested Powers and may make such recommendations as to the action to be taken in consequence of such default as it may think necessary."

ARTICLE 2.

In accordance with the provisions of the Experts' Plan, sanctions will not be imposed on Germany in pursuance of paragraph 18 of

Annex II to Part VIII (Reparation) of the Treaty of Versailles unless a default within the meaning of Section III of Part I of the report of the said Committee of Experts has been declared under the conditions laid down by the said Annex as amended in conformity with this agreement.

In this case the signatory Governments, acting with the consciousness of joint trusteeship for the financial interests of themselves and of the persons who advance money upon the lines of the said plan, will confer at once on the nature of the sanctions to be applied and on the method of their rapid and effective application.

ARTICLE 3.

In order to secure the service of the loan of 800 million gold marks contemplated by the Experts' Plan, and in order to facilitate the issue of that loan to the public, the signatory Governments hereby declare that, in case sanctions have to be imposed in consequence of a default by Germany they will safeguard any specific securities which may be pledged to the service of the loan.

The signatory Governments further declare that they consider the service of the loan as entitled to absolute priority as regards any resources of Germany so far as such resources may have been subjected to a general charge in favour of the said loan and also as regards any resources that may arise as a result of the imposition of sanctions.

ARTICLE 4.

Any dispute between the signatory Governments arising out of articles 2 or 3 of the present agreement shall, if it cannot be settled by negotiation, be submitted to the Permanent Court of International Justice.

ARTICLE 5.

Unless otherwise expressly stipulated in the preceding articles of this agreement all the existing rights of the signatory Governments under the Treaty of Versailles read with the report of the experts referred to in article 2 are reserved.

ARTICLE 6.

The present Agreement, of which the French and English texts. are both authentic, shall come into force from the moment of signature.